“In an effort to avoid wasting limited resources defending itself against a legal challenge by a state agency, the foundation made a decision to change course and initiate a process to pay its final expenses and transfer the remaining funds to the state as permitted by law,” foundation spokesman Marc Palazzo said in a statement distributed to reporters during the hearing.

Lawyer Craig Enoch told legislators that the foundation will present a closure plan to the attorney general's office.

The disclosure came a day after it was revealed the attorney general's office is investigating the foundation for changes it made last month to its articles of incorporation authorizing a new name, a new board of directors and an end to its controversial practice of supplementing the salaries of top CPRIT executives. The attorney general's office last week responded with a cease-and-desist letter to stop the foundation from spending or obligating money until the office finishes its review.

Wayne Roberts, CPRIT's interim executive director, brought the matter to the attention of the attorney general's office after learning the foundation had reconstituted itself as the Texas Cancer Coalition. Roberts said his concern was that any funds raised might not be used as intended to support the activities of the cancer agency.

Tuesday's hearing, meanwhile, was another legislative drubbing of CPRIT and the foundation, this time by the committee on transparency in state agency operations. Committee members floated the idea that it might be time for a purging of CPRIT's governing board.

“Why leave the people in place that let the agency get screwed up?” asked Rep. Charles Perry, R-Lubbock. “The fact they didn't step up to stop the problems is enough reason to get rid of them.”

The committee would invite cancer agency board members to appear at their meeting next week. Noting board members' reluctance to attend previous hearings, committee members said they will call for removal of any that don't show up.

He also called for Attorney General Greg Abbott to place the foundation into receivership rather than allow the agency to oversee its own closure. Abbott's office did not respond to a request for comment.

The foundation's current cash on hand is a little over $613,000. It estimates that after payments for administrative costs, the balance to transfer to the state would be just over $220,000.